In a statement released by the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), warned Nigerians to prepare for economic downturn, due to the low level of crude oil price in the international market because of the spread of Coronavirus (Covid-19), causing more than 95 countries to shutdown the production of crude oil and refined Petroleum products in large quantity.
The assumption for year 2020 is 60$ per barrel crude oil price as an average now we are facing 30 and we haven’t seen the bottom.
Incase you don’t know; Nigeria is the largest crude oil producer in Africa , which solely relies largely on importation of petrol and other refined products as its refineries have remained in a state of disrepair for more than a decade now.
NNPC emphasized that the oil industry is the most important sector in Nigeria economy and the Nigerian National Petroleum Corporation has been the sole importer of petrol into the country for few years, after private oil marketers stopped importing the commodity due to crude oil price fluctuation in the market and among other issues, as of now, there over 12 LPG cargos stranded worldwide because the outbreak of the coronavirus disease which caused most of the cargos to be stranded and no hub because of the abrupt collapse in demand.
The NNPC lamented that if care is not taken Nigerians will face, at least, a few months of hardship and economy downside before the oil price increases, even if the market recovered from the price shock immediately as it would take time for the effect to wear off warning.
It is obvious that Nigeria government, is yet to take drastic action before it’s too late.
SOURCE: opr.news
